TORONTO--(BUSINESS WIRE)--Almonty Industries Inc. (“Almonty” or the “Company”) (TSX: AII / OTCQX: ALMTF / Frankfurt: 1MR) is pleased to announce that it has obtained the clearance and acceptance by the Lending Bank (“KfW-IPEX Bank”) of the final technical due diligence report on the Sangdong Mine Development Project submitted by the Independent Engineer.
The final acceptance of the Independent Engineer’s report signifies the clearance of certain pending issues related to compliance with the Equator Principles and, therefore, the project is now moving forward to the next stage of financial closure.
Almonty has worked closely with the Independent Engineer in the past several months to ensure sustainable development outcomes and the integration of environmental, safety and social considerations into the project development procedures, meeting the stringent international standards and guidelines.
Almonty also announces the mechanical completion and the commencement of commissioning of the government-subsidized pilot plant at the site on the same day.
Almonty’s Chairman, President and CEO, Lewis Black said:
“The acceptance of the final due diligence report by KfW-IPEX Bank is truly a meaningful turning point for the Sangdong Mine Project. With the establishment of internationally recognized best business practices, one of the historically largest tungsten mines in the world will be developed to the highest standards in every aspect. The Equator Principles is a risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in project financing.
We are particularly pleased that the project, after ceaseless efforts for betterment and the long period of preparation, is now moving to the actual development stage. We, at Almonty, will not spare any effort in expediting the upcoming process of loan documentation and financial closing requirements followed by the commencement of the 18-month construction phase.
The final acceptance of the due diligence report and consequent green light from the KfW-IPEX Bank coincided with the news of the mechanical completion and commencement of the pilot plant commissioning which will surely be of a great help in further enhancing the remarkable metallurgical process achievement developed with Geoscience and Mineral Resources (KIGAM) already secured, as previously announced.
In my opinion, a series of forthcoming steps such as an issuance of ECA cover (being the guarantee the Austrian Development Bank (OeKB) is to issue for the loan), loan agreement signing, official ground breaking and ongoing construction will also help Almonty in consummating its pursuit of a secondary listing on the Korea Stock Exchange, the home exchange of ex-Korea Tungsten Mining Corp.
We are really thankful to the community of Sangdong and to the government of Yeongwol County for their patience and overwhelming support.”
Global Tungsten & Powders, President and CEO, Hermann Walser said:
“As the biggest tungsten product producer outside China and future off-taker of the products from the Sangdong Mine, Global Tungsten & Powders is very pleased to see that a new major tungsten mine has reached this important milestone on the path towards securing full funding.
We continue to support the due diligence process undertaken by KfW-IPEX Bank and we will further support the Austrian Export Credit Agency (OeKB) in their ongoing evaluation process to provide an export guarantee for the project. We are looking forward to 2021 when the Sangdong Mine will start to provide GTP with a long-term secure supply of tungsten concentrates that are mined and processed in a safe and responsible manner.”
The principal business of Toronto, Canada-based Almonty Industries Inc. is the mining, processing and shipping of tungsten concentrate from its Los Santos Mine in western Spain and its Panasqueira mine in Portugal as well as the development of its Sangdong tungsten mine in Gangwon Province, South Korea and the development of the Valtreixal tin/tungsten project in north western Spain. The Los Santos Mine was acquired by Almonty in September 2011 and is located approximately 50 kilometres from Salamanca in western Spain and produces tungsten concentrate. The Panasqueira mine, which has been in production since 1896, is located approximately 260 kilometres northeast of Lisbon, Portugal, was acquired in January 2016 and produces tungsten concentrate. The Sangdong mine, which was historically one of the largest tungsten mines in the world and one of the few long-life, high-grade tungsten deposits outside of China, was acquired in September 2015 through the acquisition of a 100% interest in Woulfe Mining Corp. Almonty owns 100% of the Valtreixal tin-tungsten project in north-western Spain. Further information about Almonty’s activities may be found at www.almonty.com and under Almonty’s profile at www.sedar.com.
About KfW IPEX-Bank GmbH
KfW IPEX-Bank GmbH, a 100% subsidiary of the German Government-owned promotional bank, KfWgroup, is focused on providing financings for export and project financings in various core industries for the benefit of the European economy. KfW IPEX-Bank has more than 50 years of experience in export and project finance and is also a long-standing financier to the international mining industry.
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Disclaimer for Forward-Looking Information
When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. These statements and information are based on management’s beliefs, estimates and opinions on the date that statements are made and reflect Almonty’s current expectations.
Forward-looking statements in this press release include, among others, statements regarding Almonty’s future business plans and operations, the Sangdong mine project financing and commissioning thereof, including construction phases, completion of the project financing principal terms and commitments and the anticipated timing thereof and of the Sangdong mine commissioning, the execution of definitive loan and security documentation, other conditions to the completion of the project financing, and Almonty’s anticipated secondary listing on the Korean Stock Exchange.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Almonty to be materially different from those expressed or implied by such forward-looking statements. Such risks include, but are not limited to, the risks discussed in the Company’s management discussion and analysis for the three and six months ended March 31, 2019 and in its annual information form for the year ended September 30, 2018.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to, the receipt of all required final approvals, no unanticipated delays in project financing, no material unanticipated costs and expenses, no material adverse change in general market and industry conditions and no unanticipated material operational risks, including large project risk and contractual factors, no material adverse change in the market price of APT, the continuing ability to fund or obtain funding for outstanding commitments, expectations regarding the resolution of legal and tax matters, no negative change to applicable laws, the ability to secure local contractors, employees and assistance as and when required and on reasonable terms, and such other assumptions and factors as are set out herein. Although Almonty has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Almonty. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary.
Investors are cautioned against attributing undue certainty to forward-looking statements. Almonty cautions that the foregoing list of material factors is not exhaustive. When relying on Almonty’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
Almonty has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF ALMONTY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE ALMONTY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.